The Payday Loan Trap, you know when you are stuck taking out payday loans every month.

It can be a depressing and stressful time knowing how much interest you will be paying. You are not able to pay the loan in full because you are having to roll it over again. The cycle continues.

You wish you could turn the clock back and make it so that you never even knew about payday loans.

I was trapped in the same cycle with a number of payday loans running month to month, just paying off the interest. I wasn’t getting anywhere.

Then one day I decided I could no longer continue the shenanigans and defaulted on the lot of them.

Escaping the Payday Loan Trap

However, it might not be too late for you. If you are only stuck with one or two payday loans perhaps you could try to sell something to pay it back?

Or perhaps you could go without something for a month? Maybe you could try to pick up some overtime, if that is possible in this recession or whatever the media are calling it today.

I got stuck in the payday loan trap because of several reasons. I was already financially over committed on my more conventional lending. For example credit cards and loans. Payday loans were, and perhaps still are very easy to obtain in the UK.

I am not even sure if any of the lenders I used bothered to credit check me, which was a big mistake. None of them asked about how much I had to pay out. If they could see this information perhaps they wouldn’t have lent anything to me. Who knows.

It was my own doing

I accept responsiblity for making my own payday loan trap. I should have been more responsible but I wasn’t. Now I owe a lot of money which will take me a long time to pay back.

However all is not lost. I am no longer stuck in the endless rollover cycles I found myself in previously. No, now I am just repaying whichever debt collection agencies bought my debt and my balance is reducing, albeit rather slowly.

So in a way I managed to escape by defaulting. However my credit rating is ruined and I have the daily toil of controlling the debt collectors hoping to pick off the bones of my financial ruin.